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<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This annual shareholder report contains important information about the fund for the period of January 1, 2025, to December 31, </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2025.</div>
annual shareholder report
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can find additional information about the fund at </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div> <div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can also request </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">this information by calling </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1-866-414-6349</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> or by sending an email request to </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">orders@mysummaryprospectus.com</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div>
www.schwabassetmanagement.com/prospectus
1-866-414-6349
orders@mysummaryprospectus.com
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">FUND COSTS FOR THE LAST year ENDED December 31, 2025 </div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; font-style: normal; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt">
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-right: 3pt; text-align: left; white-space: nowrap; font-size: 9pt;"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:98.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS OF A</div></div><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:95.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS PAID AS A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">PERCENTAGE OF A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td></tr>
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<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab Monthly Income Fund – Target Payout*</div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:98.91pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:11.99pt"><div style="display:flex;white-space:nowrap;width:11.99pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 11.99pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:95.91pt"><div style="line-height:10.5pt;margin-left:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:27.11pt"><div style="display:flex;white-space:nowrap;width:27.11pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 27.11pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.27pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">*</div></div><div style="float:left;line-height:13.0pt;margin-left:4.73pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expenses incurred by the fund through its investments in the underlying funds.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
0
0
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE</div></div></div></div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the 12-month reporting period ended December 31, 2025, the fund returned 12.17%. The S&P 500</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Index, which provides a </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond market performance, returned 17.88% and 7.30%, respectively. The fund’s internally calculated comparative index, the Target </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Payout Composite Index (the composite index), returned 11.66%.</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s distribution yield (payout) was 4.78%</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">1</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Asset allocations were broadly in line with those of the composite index</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Top contributors to total return:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab International Dividend Equity ETF</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab U.S. Aggregate Bond Index Fund</div></div></div><div style="line-height:11.0pt;margin-left:9.59pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; margin-left: -9.59pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">were:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">BlackRock High Yield Bond Portfolio (Class K)</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab 5-10 Year Corporate Bond ETF</div></div></div><div style="line-height:9.0pt;margin-top:106.50pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Distributions may exceed income available and may include capital gains or return of capital to help reach the annual payout rate. A return of capital is a distribution from the </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">shareholder’s investment principal, rather than net profits from the fund’s returns. Shareholders who receive periodic distributions consisting of a return of capital may be </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">under the impression that they are receiving net profits when they are not. Return of capital reduces your cost basis in the fund’s shares and is not taxable to you until your </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">cost basis has been reduced to zero. The tax-basis of distributions are finalized at fiscal year-end and may be recharacterized from income distributions to capital gains or </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">return of capital.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
The performance data quoted represents past performance. Past performance does not guarantee future results.
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">To obtain performance information current to the most recent month end, please </div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">visit </div></div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Performance of Hypothetical $10,000 Investment (December 31, 2015 - December 31, 2025)</div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 5.5pt; position: relative; text-transform: uppercase; top: -3.75pt; letter-spacing: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1</div></div></div></div></div></div>
<img alt=" " src="g36158g2lg_2mq4.jpg" style="height:172pt;width:520pt"/><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">T</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">hese </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Average Annual Total Returns</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="line-height:0.0pt;margin-top:0.00pt;text-align:left"> </div><div style="margin-top:0.0pt">
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Fund and Inception Date</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:40.52pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1 Year</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:53.01pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">5 Years</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:45.56pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">10 Years</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Fund: Schwab Monthly Income Fund – Target Payout (03/28/2008)</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">1</div> <div style="clear:right"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">12.17%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.82%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">4.85%</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">S&P 500</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">17.88%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.42%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.82%</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Bloomberg US Aggregate Bond Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">7.30%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">-0.36%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">2.01%</div></div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Target Payout Composite Index</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">11.66%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:10.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.79%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:10.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">5.86%</div></div></div></div></td></tr></table></div><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">T</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">hese </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
Schwab Monthly Income Fund – Target Payout
2008-03-28
0.1217
0.0382
0.0485
S&P 500® Index
0.1788
0.1442
0.1482
Bloomberg US Aggregate Bond Index
0.073
-0.0036
0.0201
Target Payout Composite Index
0.1166
0.0379
0.0586
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">T</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">hese </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Statistics</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #385768;empty-cells:show;width:255pt">
<tr style="height:13.25pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Net Assets (millions)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$53</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Number of Holdings</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">11</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio Turnover Rate</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">27%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Advisory Fees Paid by the Fund</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12-Month Distribution Yield</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">4.78%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign Tax Paid and Passed Through</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$27,439</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Gross Income from Foreign Sources</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$372,273</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Dividends Received Deduction</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">19.68%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Dividend Income</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$826,390</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Business Income (199A)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$63,878</div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Business Interest Deduction (163j)</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">49.76%</div></div></div></td></tr></table></div>
53000000
11
0.27
0
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset Class Weightings % of Investments</div></div></div></div></div></div>
<img alt=" " src="g36158g2imge1bc43ae2.jpg" style="height:191pt;width:253pt"/><div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g2img55ad47343.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:109.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g2img55ad47343.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:109.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
Schwab Monthly Income Fund – Flexible Payout
Schwab Monthly Income Fund – Flexible Payout
SWKRX
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This annual shareholder report contains important information about the fund for the period of January 1, 2025, to December 31, </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2025.</div>
annual shareholder report
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can find additional information about the fund at </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div> <div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can also request </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">this information by calling </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1-866-414-6349</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> or by sending an email request to </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">orders@mysummaryprospectus.com</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div>
www.schwabassetmanagement.com/prospectus
1-866-414-6349
orders@mysummaryprospectus.com
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">FUND COSTS FOR THE LAST year ENDED December 31, 2025 </div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; font-style: normal; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:522pt">
<tr style="height:31pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-right: 3pt; text-align: left; white-space: nowrap; font-size: 9pt;"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:98.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS OF A</div></div><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:95.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS PAID AS A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">PERCENTAGE OF A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td></tr>
<tr style="height:12.5pt">
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab Monthly Income Fund – Flexible Payout*</div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:98.91pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:11.99pt"><div style="display:flex;white-space:nowrap;width:11.99pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 11.99pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:95.91pt"><div style="line-height:10.5pt;margin-left:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:27.11pt"><div style="display:flex;white-space:nowrap;width:27.11pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 27.11pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.27pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">*</div></div><div style="float:left;line-height:13.0pt;margin-left:4.73pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expenses incurred by the fund through its investments in the underlying funds.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
0
0
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE</div></div></div></div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the 12-month reporting period ended December 31, 2025, the fund returned 12.14%. The S&P 500</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Index, which provides a </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond market performance, returned 17.88% and 7.30%, respectively. The fund’s internally calculated comparative index, the Flexible </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Payout Composite Index (the composite index), returned 11.66%.</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s distribution yield (payout) was 4.41%</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">1</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Asset allocations were broadly in line with those of the composite index</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Top contributors to total return:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab International Dividend Equity ETF</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab U.S. Aggregate Bond Index Fund</div></div></div><div style="line-height:11.0pt;margin-left:9.59pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; margin-left: -9.59pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">were:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">BlackRock High Yield Bond Portfolio (Class K)</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab 5-10 Year Corporate Bond ETF</div></div></div><div style="line-height:9.0pt;margin-top:106.50pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Distributions may exceed income available and may include capital gains or return of capital to help reach the annual payout rate. A return of capital is a distribution from the </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">shareholder’s investment principal, rather than net profits from the fund’s returns. Shareholders who receive periodic distributions consisting of a return of capital may be </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">under the impression that they are receiving net profits when they are not. Return of capital reduces your cost basis in the fund’s shares and is not taxable to you until your </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">cost basis has been reduced to zero. The tax-basis of distributions are finalized at fiscal year-end and may be recharacterized from income distributions to capital gains or </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">return of capital.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
The performance data quoted represents past performance. Past performance does not guarantee future results.
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">To obtain performance information current to the most recent month end, please </div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">visit </div></div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Performance of Hypothetical $10,000 Investment (December 31, 2015 - December 31, 2025)</div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 5.5pt; position: relative; text-transform: uppercase; top: -3.75pt; letter-spacing: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1</div></div></div></div></div></div>
<img alt=" " src="g36158g3lg_2mq5.jpg" style="height:172pt;width:520pt"/><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Average Annual Total Returns</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="line-height:0.0pt;margin-top:0.00pt;text-align:left"> </div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #385768;empty-cells:show;width:522pt">
<tr style="height:13.25pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Fund and Inception Date</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:40.52pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1 Year</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:53.01pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">5 Years</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:45.56pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">10 Years</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Fund: Schwab Monthly Income Fund – Flexible Payout (03/28/2008)</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">1</div> <div style="clear:right"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">12.14%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.21%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">4.27%</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">S&P 500</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">17.88%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.42%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.82%</div></div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Bloomberg US Aggregate Bond Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">7.30%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">-0.36%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">2.01%</div></div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Flexible Payout Composite Index</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">11.66%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:10.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.19%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:10.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">5.01%</div></div></div></div></td></tr></table></div><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
Schwab Monthly Income Fund – Flexible Payout
2008-03-28
0.1214
0.0321
0.0427
S&P 500® Index
0.1788
0.1442
0.1482
Bloomberg US Aggregate Bond Index
0.073
-0.0036
0.0201
Flexible Payout Composite Index
0.1166
0.0319
0.0501
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Statistics</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #385768;empty-cells:show;width:255pt">
<tr style="height:13.25pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Net Assets (millions)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$74</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Number of Holdings</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">11</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio Turnover Rate</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">25%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Advisory Fees Paid by the Fund</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12-Month Distribution Yield</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">4.41%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign Tax Paid and Passed Through</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$42,967</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Gross Income from Foreign Sources</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$582,942</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Dividends Received Deduction</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">19.61%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Dividend Income</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$1,304,411</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Business Income (199A)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$104,678</div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:213.64pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Business Interest Deduction (163j)</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:41.36pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">50.68%</div></div></div></td></tr></table></div>
74000000
11
0.25
0
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset Class Weightings % of Investments</div></div></div></div></div></div>
<img alt=" " src="g36158g3imge2d74c2e2.jpg" style="height:191pt;width:253pt"/><div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g3imgac2b9a373.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:109.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g3imgac2b9a373.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:109.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
Schwab Monthly Income Fund – Income Payout
Schwab Monthly Income Fund – Income Payout
SWLRX
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This annual shareholder report contains important information about the fund for the period of January 1, 2025, to December 31, </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2025.</div>
annual shareholder report
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can find additional information about the fund at </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div> <div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">You can also request </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">this information by calling </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1-866-414-6349</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> or by sending an email request to </div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">orders@mysummaryprospectus.com</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">.</div>
www.schwabassetmanagement.com/prospectus
1-866-414-6349
orders@mysummaryprospectus.com
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">FUND COSTS FOR THE LAST year ENDED December 31, 2025 </div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; font-style: normal; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:522pt">
<tr style="height:31pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-right: 3pt; text-align: left; white-space: nowrap; font-size: 9pt;"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:98.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS OF A</div></div><div style="margin-left:1pt;margin-right:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:95.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">COSTS PAID AS A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">PERCENTAGE OF A</div></div><div style="margin-left:5.5pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$10,000 INVESTMENT</div></div></div></td></tr>
<tr style="height:12.5pt">
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:327.17pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab Monthly Income Fund – Income Payout*</div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:98.91pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:11.99pt"><div style="display:flex;white-space:nowrap;width:11.99pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 11.99pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;white-space:nowrap;width:95.91pt"><div style="line-height:10.5pt;margin-left:7.5pt;text-align:right;width:88.41pt"><div style="display:flex;margin:auto;width:27.11pt"><div style="display:flex;white-space:nowrap;width:27.11pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 9pt; width: 27.11pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.27pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">*</div></div><div style="float:left;line-height:13.0pt;margin-left:4.73pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expenses incurred by the fund through its investments in the underlying funds.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 12pt; line-height: 9pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
0
0
<div style="line-height:11.0pt;margin-top:0pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE</div></div></div></div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the 12-month reporting period ended December 31, 2025, the fund returned 9.85%. The S&P 500</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Index, which provides a </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond market performance, returned 17.88% and 7.30%, respectively. The fund’s internally calculated comparative index, the Income </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Payout Composite Index (the composite index), returned 9.67%.</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s distribution yield (payout) was 4.63%</div><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">1</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Asset allocations were broadly in line with those of the composite index</div></div></div><div style="line-height:11.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Top contributors to total return:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab International Dividend Equity ETF</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab U.S. Aggregate Bond Index Fund</div></div></div><div style="line-height:11.0pt;margin-left:9.59pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: Arial; font-size: 8pt; margin-left: -9.59pt; letter-spacing: 0px; top: 0px;display:inline;">■</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; line-height: 11pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">were:</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">BlackRock High Yield Bond Portfolio (Class K)</div></div></div><div style="line-height:11.0pt;margin-left:10.4pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">● </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Schwab Long-Term U.S. Treasury ETF</div></div></div><div style="line-height:9.0pt;margin-top:115.50pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Does not expect to include capital gains or return of capital to help reach the annual payout rate. A return of capital is a distribution from the shareholder’s investment </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">principal, rather than net profits from the fund’s returns. Shareholders who receive periodic distributions consisting of a return of capital may be under the impression that </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">they are receiving net profits when they are not. Return of capital reduces your cost basis in the fund’s shares and is not taxable to you until your cost basis has been reduced </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">to zero. The tax-basis of distributions are finalized at fiscal year-end and may be recharacterized from income distributions to capital gains or return of capital.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
The performance data quoted represents past performance. Past performance does not guarantee future results.
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">To obtain performance information current to the most recent month end, please </div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">visit </div></div><div style="color: rgb(36, 235, 255); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">www.schwabassetmanagement.com/prospectus</div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9.5pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Performance of Hypothetical $10,000 Investment (December 31, 2015 - December 31, 2025)</div></div><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 5.5pt; position: relative; text-transform: uppercase; top: -3.75pt; letter-spacing: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1</div></div></div></div></div></div>
<img alt=" " src="g36158g4lg_2mq6.jpg" style="height:172pt;width:520pt"/><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.38%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Average Annual Total Returns</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="line-height:0.0pt;margin-top:0.00pt;text-align:left"> </div><div style="margin-top:0.0pt">
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Fund and Inception Date</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:40.52pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:1pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">1 Year</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:53.01pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;margin-right:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">5 Years</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:45.56pt"><div style="line-height:11.0pt;text-align:left"><div style="margin-left:10pt;text-align:Center;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">10 Years</div></div></div></div></td></tr>
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Fund: Schwab Monthly Income Fund – Income Payout (03/28/2008)</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">1</div> <div style="clear:right"> </div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">9.85%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">1.97%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.37%</div></div></div></div></td></tr>
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">S&P 500</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5.5pt; margin-left: 0pt; position: relative; top: -3.75pt; letter-spacing: 0px;display:inline;">®</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"> Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">17.88%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.42%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">14.82%</div></div></div></div></td></tr>
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<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Bloomberg US Aggregate Bond Index</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:11.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">7.30%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:11.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">-0.36%</div></div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:11.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">2.01%</div></div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;width:382.91pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Income Payout Composite Index</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:40.52pt"><div style="line-height:10.5pt;margin-left:3pt;margin-right:12pt;text-align:right;width:25.52pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">9.67%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:53.01pt"><div style="line-height:10.5pt;margin-left:12pt;margin-right:12pt;text-align:right;width:29.01pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">2.00%</div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Bottom;white-space:nowrap;width:45.56pt"><div style="line-height:10.5pt;margin-left:12pt;text-align:right;width:33.56pt"><div style="display:flex;margin:auto;width:27.52pt"><div style="display:flex;white-space:nowrap;width:27.52pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; width: 27.52pt; letter-spacing: 0px; top: 0px;display:inline;">3.83%</div></div></div></div></td></tr></table></div><div style="line-height:9.0pt;margin-top:282.50pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.</div></div></div><div style="line-height:9.0pt;margin-top:3.00pt;text-align:left"><div style="margin-top:3pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">For index definitions, please see www.schwabassetmanagement.com/glossary.</div></div></div><div><div style="clear:both;margin-top:3.00pt;position:relative;width:100%"><div style="float:left;line-height:6pt;text-align:left;width:2.88pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:9.0pt;margin-left:4.12pt;text-align:left;width:510.00pt"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div>
Schwab Monthly Income Fund – Income Payout
2008-03-28
0.0985
0.0197
0.0337
S&P 500® Index
0.1788
0.1442
0.1482
Bloomberg US Aggregate Bond Index
0.073
-0.0036
0.0201
Income Payout Composite Index
0.0967
0.02
0.0383
<div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">These </div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.</div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Statistics</div></div></div></div><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div></div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #385768;empty-cells:show;width:255pt">
<tr style="height:13.25pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Net Assets (millions)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$66</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Number of Holdings</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">12</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio Turnover Rate</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">25%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Advisory Fees Paid by the Fund</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$0</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">12-Month Distribution Yield</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">4.63%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Foreign Tax Paid and Passed Through</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$20,942</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Gross Income from Foreign Sources</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$284,128</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Dividends Received Deduction</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">13.27%</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Dividend Income</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$758,708</div></div></div></td></tr>
<tr style="height:13.5pt">
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Qualified Business Income (199A)</div></div></div></td>
<td style="border-bottom:0.5pt solid #385768;padding-bottom:2.0pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:11.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">$53,212</div></div></div></td></tr>
<tr style="height:11.75pt">
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:219.87pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-right:3pt;text-align:Left;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Business Interest Deduction (163j)</div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:2.0pt;vertical-align:Top;width:35.13pt"><div style="line-height:10.5pt;text-align:left"><div style="margin-left:3pt;text-align:Right;white-space:nowrap"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; letter-spacing: 0px; top: 0px;display:inline;">65.64%</div></div></div></td></tr></table></div>
66000000
12
0.25
0
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset Class Weightings % of Investments</div></div></div></div></div></div>
<img alt=" " src="g36158g4imgd8c7d4dc2.jpg" style="height:211pt;width:253pt"/><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 9pt; line-height: 1pt; background: none; text-decoration: none; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;"> </div></div><div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g4img08d27acd3.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:98.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
<div style="line-height:11.0pt;margin-top:5pt;text-align:left"><div style="margin-top:0.01pt"><div style="background-color:#385768;margin-left:0%"><div style="margin-left:0.78%"><div style="color: rgb(255, 255, 255); font-family: "Arial Narrow"; font-size: 9pt; text-transform: uppercase; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Top Holdings % of Net Assets</div></div></div></div></div></div>
<img alt=" " src="g36158g4img08d27acd3.jpg" style="height:214pt;width:253pt"/><div style="line-height:9.0pt;margin-top:98.5pt;text-align:left"><div style="color: rgb(56, 87, 104); font-family: "Arial Narrow"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Portfolio holdings may have changed since the report date.</div></div>
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds.
The fund’s routine expenses have been absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.